Total novice! Aussie living in the UK!

Once you start earning income (rent) in Australia you will need to lodge an Australian tax return.
Also the asset will be subject to CGT when you sell. As a non-res you dont get any CGT discount. Among other 'perks'. Any profit will be taxed at +/-30% flat rate.

You may also need to justify to them why you are not paying tax on your foreign income. Depending on your circumstance this can be easy...or not.

Blacky

 

Good points.
Would neg geared then be preferred to minimize the tax burden?

 

Negative gearing is 'benificial' to offset against other income.
If you are a non-res, you dont have any other taxable income. Your losses would be carried forward until you make a profit. This may, or may not happen, depending on your plans.

In any case I generally disagree with spending $1 to save $0.30c (the exception of coarse is non-cash deductions).

Blacky

 

Thanks, I will definitely look into that. She told me that I don't need to until I am looking to return, to be fair I didnt question her as if/ when I do lodge one I will have to pay quite a large amount to the ATO. Tax brackets definitely work in my favour over here! I would have thought that I will need to once I do buy though.

 

Welcome Indi!

I think most on this forum have been tipping Brisbane to do well, Brisbane houses more specifically. There's quite a bit of unit supply going up that may put a lid on unit price growth. Over the past ten years unit price dwellings have performed reasonably on par with houses in QLD, so that moving in line with other states (where houses have done marginally better) may also be part of the thinking.

 

They are cracking down on avoidance schemes though. E.g. google settlement opportunity hmrc.

 

What I can afford in London would be the Mount Druitt equivalent, not exactly my dream area.

Can anyone recommend an Accountant who deals with/ knows UK and AUS Tax laws?